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Filed by Microchip Technology Incorporated
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Telcom Semiconductor, Inc.
Commission File No. 0-21184
The following slides were used at an investor conference on October 30, 2000.
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vin Why expand Microchip's Analog capability?
. Analog market growing from $22B in `99 to $48B in `03*
. Proprietary analog enjoys high, sustainable margins
. $1.50 of analog for every $1.00 of microcontroller**
. Leverage:
. Brand recognition
. Over 30,000 current PICmicro customers
. Sales and Applications resources
. Technology investment
. Design re-use
* Source: SIA June 2000
** Source: Design News-1998
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vin Why TelCom Semiconductor?
. Analog business is a natural fit for Microchip's microcontroller product line
. TelCom: 6,000 Analog customers, 230 Analog products and high quality
engineering team accelerate our Analog initiative by years
. TelCom's analog products and capabilities can increase microcontroller /
analog attach rates
. TelCom can leverage Microchip's existing fab capacity for both existing and
future products
. Attractive value - $185M enterprise value - $115M cash
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vin Microchip's Stand-alone Analog Customer Growth
[BAR GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
TelCom adds 6,000 stand-
alone analog customers.
Q299 Q399 Q499 Q100 Q200 Q300 Q400 Q101 Q201
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
# of Customers 0 7 83 383 529 570 1263 1472 1704
</TABLE>
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vin Revenue Breakdown
by Market
<TABLE>
<CAPTION>
Microchip TelCom
--------- ------
<S> <C> <C>
Consumer 36% 2%
Automotive 19% 0%
Industrial 15% 28%
Communications 15% 52%
Computing 15% 13%
</TABLE>
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vin The Embedded Control Signal Chain
"The Combined Footprint"
[FLOW CHART APPEARS HERE]
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vin Design-in Revenue Opportunity
. Tracking $2.1B of PICmicro design opportunities
<TABLE>
<CAPTION>
Available "attached" opportunity
$ Analog per Total available # of
$1.00 microcontroller opportunity $ products
--------------------- ------------- --------
<S> <C> <C> <C>
Microchip $.05 $100M 30
Microchip & TelCom (Today) $.30 $600M 180
Microchip & TelCom (18 mo.) $.45 $900M 280
</TABLE>
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